We've talked about unconventional gas drilling underway in Chile. Now it appears another Latin American nation wants to get in on the act: Brazil.
U.S. Energy Secretary Ernest Moniz talked shale during a visit to Brazil this weekend. Moniz noted that U.S energy companies are eager to use their unconventional expertise to help exploit Brazil's resources.
His comments were undoubtedly spurred by Brazil's upcoming November oil and gas bid round. The auction will be the first in the nation's history aimed at unconventional resources.
There is certainly geologic potential here. Earlier this year, state hydrocarbon agency ANP estimated that Brazil may hold over 500 trillion cubic feet of unconventional gas reserves.
The upcoming bid round will feature 240 blocks in both frontier basins and established producing areas.
Like Chile, Brazil has a well-established industrial sector. Which could provide the sort of services support needed to make shale gas economic.
In fact, Brazil may be an even better place for shale. By virtue of the country's well-established conventional hydrocarbon sector. And the built-up services industry that drives it.
The gas market here is reasonable. With Brazil in fact looking to increase domestic supply and move away from expensive LNG.
With all these pluses, this might be a place where shale can work. We'll see what the bidding is like November 28 to 29.
Here's to the new shale frontiers,
By. Dave Forest